Julia32 Posted March 25, 2011 Report Share Posted March 25, 2011 I am doing an article about a trade deficit in Bangladeshand I am talking about current trade deficit, surplus, its consequencesetcyou can take a quick look at the file.what diagrams can I use for this? Is it necesary for me to have diagrams?PLEASE HELP!ARTICLE 3.docx Reply Link to post Share on other sites More sharing options...
Keel Posted March 26, 2011 Report Share Posted March 26, 2011 Since Imports are a component of AD [AD=C+G+I+(X-M)], you can show, using an AD/LRAS diagram, how AD is expected to fall in the near future leading to a continuation of trade deficit and possibly a decrease in Real GDP. This diagram with go hand in hand with the issue of decreased remittances from workers abroad thus lowering domestic consumption C, also decreasing AD and Real GDP. The inflation caused appears to be cost-push in nature, so you could draw another with LRAS shifting up or even the effects on SRAS. 1 Reply Link to post Share on other sites More sharing options...
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